my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. some people make friends. i'm just trying to save you money. my job is not just to entertain but to educate, so call me at 1-800-743-cnbc. don't bury the lead. that's something they teach you the very first day you get into professional journalism. and on a day when the dow dropped 106 points, s&p tumbled

and the nasdaq declined 6.3%, i'm leading my game plan with what really matters next week, and that's the federal reserve's open market committee meeting that starts next tuesday and concludes wednesday. because if ben bernanke says the wrong thing, meaning he gives sellers any reason to dump bonds, we are going to revisit the ugliness from earlier this week, and maybe a little bit like today. based on yesterday's lead comments in the "wall street journal," i think it's clear that the fed chairman doesn't like the interpretation of his previous comments, which were simply meant to say one day, hey, one day, the fed's stimulus plan that's kept rates down will end. i know bernanke can finesse his warnings about a potential tapering or any of his by program better than he did most recently. i think he was a little inartful about the whole thing? remember, the fed previously said it is targeting employment and it will conclude its efforts

when the rate hits 6.5%. that lulled a lot of people into thinking, good, we can continue to hunt for yield in emergent bond markets and higher yielding municipal and corporate bond funds, and of course in high-yielding stocks, because we're nowhere near the 6.5% target yet! bernanke delivered a monster wake-up call when he implied that he would let rates go higher sooner rather than later, spurring the $3 trillion global sell-off that we're still experiencing. now that interest rates have gone down a little bit, he's in a position to say right now we are fine. we're going to keep doing what we're doing, but those of you who are reaching for yield, you have now seen what can happen. so, why not position yourself better next time around? meaning, stop it with the reckless search for returns somewhere, anywhere, because you will lose money when i'm done. if bernanke does that, then at least the end of all this stimulus has a chance of being, let's say moe orderly when it comes to the stock market? as the wake-up call should have been loud and clear to everyone who's been attempting to get yield in all the wrong places, meaning taking on too much risk.

that's what this last week has been about. now, we don't have all that much on the earnings front next week, which means the focus will again be on interpreting each piece of data through the fed's eyes and ears. take monday, okay? we're going to get the empire state survey. now, typically, do i care a lot about this? well, you know, neither here nor there, but this week, i do care. i think it's going to show weakness, and that's a weakness that will remind us that the actual economy doesn't support much higher interest rates like we had overnight, even though, ultimately, i know they will go higher. see, but this is what's been so unreal about this whole run-up in rates that's caused the stock market to get hit -- it hasn't been justified by the data. and i think monday, we will find it still isn't. thank heavens for bernanke, because if he had listened to the endless chattering hawks in the fed, i know we'd get a hideous number. all the numbers would be hideous. it's just always worth reminding, worth reminding everyone that bernanke's done amazing work, even as all i ever hear is that he's over his head or this must end badly.

have you looked around at the world's other economies? we're doing better than everyone else on the globe, in part because our chief executive officers have done an excellent job in a global slowdown, but also because of exactly what bernanke's doing. this bond program has probably allowed you and other americans refi their home and companies fix their balance sheets, which is why we're not in the shape of china or brazil or india. can you imagine we're doing better than all of those places? tuesday we have a slew of japanese industrial production reports. we've got machine tools. we've got merchandise trade deficits. now, for years, i couldn't care less about this stuff. i could care less. i mean, really, like japan. it stopped meaning anything for a decade. these days, market players are drawn to japan because the government has a policy of driving its own currently down to build exports. if the data is positive here, japan's stock market will rocket. and if it doesn't and the government has nothing to say about it, like 6% declines like earlier this week, the japanese futures, the stocks were indicating that japan will be

down huge on monday. look out. there are two big reports wednesday along with the fed meeting's results. when we come in in that morning, we're going to hear from fedex, which i regard as kind of its own fed, and then this one's become almost -- fedex has become almost a two-part drop. first, it's tragedy when the company fails to meet expectations and the stock gets crushed. then comes the farce, when the company says it is taking out costs and it's hopeful that things turn in the second half of the year, so don't change your expectations too much. that puts fedex right back where it started. did you know this pattern's been going on for years now? it's a nauseating roller coaster, kind of like pharaoh's fury. ever been on that? realize that the gloom is not followed by doom but by predictions of a modified boom. then we get a listen to micron, probably the most interesting call of the week. it's now a transformed company. having bought a japanese firm for peanuts last year and its market share in d-rams, the processors that are pretty much in everything, they're just kind of in and we take them for

granted now. they used to be special. there used to be ten players in this business and now there's only three. so, it's possible we will see the fruits of the slap-happy oligopoly in micron's earnings. and flash memory, micron is expanding a second line of business that should generate excellent commentary on the conference call. the only problem is the stock has run endlessly into this quarter, so you have to hope for a fed-induced pullback to drive it down first before you can pull the trigger. so, fed somehow has to send things down, and then you can buy micron. otherwise, i'm forbidding it. thursday, the best in show supermarket chain that is kroger gives us its report card. i'll bet we're going to like what we're going to see. as that's been the case pretty much consistently since the time this great chain decided to aggressively pursue their own label band, which is lucrative, while taking advantage of the weaknesses of competitors. we prefer whole foods because we like growth, as you heard last night in our "family affair" show. thank you, everybody, for doing a great job on that show. thank you, audience, for coming,

but i'll bet kroger's got a terrific quarter coming. i like kroger. we also get results from pier 1. after listening to the amazing restoration conference call last night, the stock rallied $9.51 today and is up gigantically from the secondary two weeks ago. i think producers are once again spending on furniture and fixtures to make our home more beautiful. now, it's the best i've seen other than michael coors when it became public. pier 1 is not a premium place like restoration hardware. it's kind of an every man or every woman's place and i think they will continue to deliver fine numbers. be aware, i think some people were short restoration hardware, thinking business would slow down because of the chatter about higher rates. it didn't happen, so i don't think pier 1 will see it either. finally friday, we have two windows into the consumer that are better than the government numbers everyone focuses on. the earnings report from darden, the restaurant chain from rob lobster and olive garden, and carmax. first, garden has to refute

press reports that people have been cutting back on dining out because of more expensive dinner checks and higher gas prices. i'm reading that both chains apparently performed better than expected, but given the insane move up in the stock, that may not be that relevant. and we have to finish the week on a high note. that's certainly been the rap of late, although yesterday i heard that car companies had to boost inventory. here's the bottom line. the fed is in charge of stocks and bonds for the moment, and if ben bernanke throws cold water on stories saying he's almost done with his bond-buying, it will be a good week. if he doesn't, it will be a bad one, no matter how many great earnings reports we get. sadly at the moment, hopefully just for the moment, it is that buying art. be careful, it's no longer that easy to make money because it's possible that bernanke may no longer have our back, although i

am confident that he'll continue to do the right thing longer term for the u.s. economy as he has ever since march of 2009 when he ended the bear market by saying no more big banks will be allowed to fail. let's go to al in california, please. al. >> caller: hi, jim. it's al from california. >> yeah, what's up? >> caller: well, i'm an owner of pfizer shares, jim, and i'm interested in your opinion as to whether i should exchange all, half or none for the zuetas offering that's being offered by pfizer next week. if you have a thought as to -- >> let me opine on both companies. i think that animal health care is just incredibly powerful multiyear growth. that's the wettest. and i think pfizer's a very good company with a good yield. you're not going to go wrong with either, so those who asked, split the difference or whatever. if you want to take down some zoetis, i bless it. if you want to keep your pfizer, i bless that, too. it's up to you. peter in new york. peter. >> caller: big boo-yah to you,

sir! >> thank you. >> caller: reason for the call, we love your show, we value your opinion, i'm a shareholder of groupon. i own it lower than this. buy, sell or hold? >> okay, i'm not a huge fan of groupon, but i've also -- ever since andrew mason left, you know, jim's mason -- no, ever since mason left -- >> sell, sell, sell! >> -- you know what? i've decided kind of a mixture, but the stock was up 10% today. i'd say let it come in if you really like it, but i do like the new managers very much, but they are interim managers, but groupon's not a short, let's put it that way. it was a screaming short. it's not a short anymore. donna in texas, please. donna. >> caller: hi, cramer. this is donna. >> hi. >> caller: i'm interested in learning a little bit more about ding foods. what happened and where's it headed? >> well, we got the spinoff completed. it's now a commodity player. i like the other side. i like the organic side of white wave. i am not a backer of dean foods.

sure, there are important companies reporting next week, but what really matters? here it is. it's all about big ben. "mad money" will be right back. coming up, better half? health care giant koevecovidien going under the knife, slicing off its pharma business into a new company, but which will be the healthiest stock to own? cramer decides. and later, spec-tacular stock? shares of this chemical company are up over 20% this year, despite being in bankruptcy. as it emerges from chapter 11, could it have the right formula for compounding returns? all coming up on "mad money." ♪

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on a frightfully ugly day, in an increasingly volatile market, why not fall back on a story that should work, regardless of what happens in japan or china or europe, or whether the federal reserve here in the u.s. decides to taper or not? what story is that? well, it's one of the oldest tales out there, a narrative that we've been featuring a lot here on "mad money," because it's been so lucrative so often. i'm talking about the story of a good breakup. not one of those media mogul divorces, but where a company could create immense value with the stroke of a pen simply by splitting itself up into smaller, cleaner, more easily

understood pieces. these have worked for us time and time again, and you know what? one of the breakups we've been eagerly anticipating for 18 months now is finally upon us, and i know you're going to ask us what to do. i'm talking about the breakup of covidien, the big medical device company spinning off its pharmaceutical division as mallinckrodt. anyone who's been to my alma mater knows that mallinckrodt is also the big chemical hall. mallinckrodt ever since december of 2011, i've been telling you that this move would create immense value. sure enough, in the time since covidien when we first talked about it, it's up 27%. the medical device business was being dragged down by a not so hot pharma division, mallinckrodt, they didn't deserve under the same roof and now the spinoff is happening. covidien shareholders of record as of june 19th -- that's next

wednesday while we're doing this piece today -- will receive one share of mallinckrodt, the pharma business, for every eight shares of covidien they own when the spin happens on june 20th. now that we're about to reach the moment of truth, the question is what do we do with these two pieces? first of all, you could have already made a bundle on covidien ahead of this breakup. i can't blame anyone who wants to ring the register right now before the spinoff happens. why not just book some profits, because you know -- say it all with me -- no one ever got hurt taking a profit. however, i do think there is more money to be made here. now, this whole time, i've been adamant that covidien's core medical business is much stronger than its pharma business, and half the point of the breakup is to allow the medical device company to stop being dragged down by one loser division, receive a higher multiple. that said, i would not sell mallinckrodt immediately after the spinoff. that be a mistake. i'll bet a lot of people are going to dump it. i think you ought to hold on to covidien and mallinckrodt, at least at first. the reason? well, first, we have a recent

precedent for what covidien's doing here, and that's the abbott labs breakup from the beginning of the year, another one i've been telling you about for ages before it happened. abbott, another medical device firm, spun off its lab business abbvie. i thought they were going to go down, but i was wrong. in the five months since then, abbott labs rallied 12%. abbrie returned 27%. this tells us there's more room to run for both stocks, even after the split happens. so, i think you keep owning both covidien and mallinckrodt, because mallinckrodt will be a little like abbvie, which i didn't like as much as abbott but the market warmed up to. this is a big but. you own them differently. covidien is an investment, a high-quality medical device play whose products are virtually in every hospital in america. i think the analysts will go nuts when mallinckrodt is spun off, but mallinckrodt, on the other hand, will be for a speculation and as a trade because i think there is value

to be taken out here as mallinckrodt will be able to focus on the drug business and also will be facing increased generic competition starting next year, so you'd probably want to sell it before next year starts. just don't sell it immediately, okay? take the abbvie lesson at heart. the example of abbott labs says they both can go higher after the split. i learned the lesson. i'm telling you to hold on. remember, covidien's been planning this move for a year and a half, so both should be leaner, stronger and ready for independen independence. covidien is expected to post 4% to 6% organic revenue growth with long-term shares growth and $2 billion in free cash flow. and don't forget, the $3 billion buyback is roughly 10% of the company's market cap. they'll be in there buying. right now, the non broken up covidien is a $66 stock, trading at 15.7 times next year's earnings estimates. one covidien breaks up, i think the valuation will get a bit of a boost, because it will be a high-quality, pure-play medical

device like a bard. if the new covidien sells for the same multiples as abbott labs, which is reasonable -- abbott trades at 16.5 times estimates -- the covidien trade-off should trade about $68, only a couple bucks higher than it is now, but we haven't counted the value of the mallinckrodt stub yet. i said we were give mallinckrodt for free at the valuation at the time. now after the rally, it still looks like you're getting mallinckrodt for free. the company gets half of its sales from injectible products that are used in various diagnostic imaging applications. then the other half of mallinckrodt is their speciality pharma business, most of which involves making active pharmaceutical ingredients as well as selling long-acting generic painkillers and adhd drugs. only a tiny piece of mallinckrodt representing 8% of sales actually involves selling branded drugs with patent protection. here their focus on developing abuse-resistant painkillers in

drugs that treat specificity. they have two pain drugs in the pipe with abuse-deterrent characteristics and a drug for osteoarthritis. the fda asked for more data on that one in march of this year. in short, mallinckrodt is far from being a great drug, but if it simply trades up to the same levels as comparable branded and generic drug plays, it could be worth maybe $6 per share of covidien. of course, this year only getting one share of mallinckrodt for every eight shares of covidien, that means i think mallinckrodt translates and could trade to $48. so, let's add it up. after the split, these two together could be worth $74 in a short period of time. that's 12% higher than where covidien is right now. once the breakup comes, i think the move could come quickly. remember that mallinckrodt is for speculation and you should be willing to let it grow into strength even after the share price target of $48, we're giving you one on this, or once we get to september, when their current fiscal year ends, whichever comes first, frankly.

because if i don't like the additional generic competition coming for mallinckrodt in 2014. here's the bottom line -- the covidien breakup, it's at hand. and just like when abbott labs spun off its pharma business, i expect both covidien and mallinckrodt to jump higher in the months after the spinoff. however, only covidien makes sense longer term as an investment. mallinckrodt? that's a speculative trade. that doesn't sound like something you want in your portfolio, go ahead and sell it, but please, sell it into strength after the split. after the break i'll try to make you more money. coming up, spec-tacular stock? shares of this chemical company are up over 20% this year, despite being in bankruptcy. as it emerges from chapter 11, could it have the right formula for compounding returns? aw this is tragic man, investors just like you

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[ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgraded experience comes from listening to our cardholders. visa signature. your idea of what a card should be. you know us, we're always looking for good, under-the-radar stocks here on "mad money," stocks that haven't quite come to the attention of the wall street promotion machine, but when they do, they could roar higher -- >> buy, buy, buy! >> because today is, indeed, speculation friday. i've got a new one for you. well, it's a new-old one. it's not really a new one, but there's a ton of internal catalysts that could catapult it higher and this is exciting for me. it's one of the first stocks i

ever bought, because i'm talking about w.r. grace, gra for all you old-timers and home gamers. a $6.3 billion speciality chemical business that's been on fire lately. the stock's up 23% for the year. you probably don't think this could happen. the underlying company is still going through bankruptcy. this is actually a pretty interesting story. a decade ago, in 2011, w.r. grace filed for chapter 11 bankruptcy because of the asbestos claims against the company were getting out of control. i'm talking about hundreds of thousands asbestos-related lawsuits. by the way, did you ever see john travolta's movie? that was based on a case that partially involved these guys! but because of the asbestos claims, they claimed bankruptcy as a business strategy. don't worry, grace just joined a legion of companies that did just this. of course, the company no longer makes asbestos-related products, nobody does, but they had lingering lawsuits and the idea was in bankruptcy, they could consolidate the claims and deal with them under a central umbrella. now they've done that. the company's paying out trusts

and it's taken care of, and now they are in the final stages of the bankruptcy process. in fact, w.r. grace is expected to emerge from bankruptcy some time in the fourth quarter, and this is where your opportunity comes in. because i think the stock is a buy and is not done going up by a long shot. see, the reason w.r. grace can fly under the radar right now is that it is still technically bankrupt. and believe it or not, few mutual funds want to own companies that are in bankruptcy. in fact, many of them simply aren't allowed by their charter. same goes for hedge funds that take money from pension plans. basically, investors are not permitted to own the stock right now even if they loved it. so, once w.r. grace emerges from bankruptcy, that should be a game-changer for the share price and they've been roaring recently in recent years because management is continuing to focus on investing in business and making some very shrewd acquisitions over the last few years. 12 months ago, this was a $48 stock. now it's an $82 stock and i think it has a lot more room to room. i told you, w.r. grace is a

speciality chemical business, but what speciality chemicals? what's that mean? the company has three main divisions. the first and largest, and to me most exciting, is catalyst technologies. that's where they make fluid-cracking catalysts that are used to refine oil into things like gasoline. it's a booming business in america now, as well as a number of additives that help refiners improve the quality of what they produce. they also make catalysts used to turn oil and gas into chemicals, another booming business, courtesy of the energy renaissance. and they have a joint venture with chevron to produce catalysts that help turn heavy oils into lighter, more useful varieties of crude. this catalyst division is the crown jewel of the company. it's a business where w.r. grace has the technology to give refiners and chemical companies what they need, and they are opening and opening and opening factories -- louisiana, go down there! we're trying to go down there. i sure hope so. anyway, plus, the catalyst industry is something of a, yes, indeed, slap-happy oligopoly, limited number of producers who pretend to play nice with each other on pricing -- i had quote

marks on play nice. second, w.r. grace has a production product segment where they build construction materials for construction markets and i am not crazy about it because the market's not doing that well, but it's a business we like given what i expect to be a rebound in the united states. it just hasn't happened yet. third and finally, there's the materials technologies division, stloor ppg. this involves making silicone-based materials and coatings for life science applications. pristine business. they also make proprietary packaging materials. you've seen them. they increase the shelf life of various canned and bottled products along with coatings that keep the metal cans from tainting their contents. w.r. grace has the best pricing power, best in breed in the business and the beauty of making proprietary chemicals rather than the commodity kind is, along with higher margins, the most of its peers. this company is, let's just say there's not a lot of companies that do exactly what they do. it's almost as if these

territories have been ceded to grace. this is a chemical company that you've probably never heard of unless you're as old as i am and a gigantic trader. not only is the business doing well, but once they come out of bankruptcy, they can become more shareholder friendly. grace should emerge from bankruptcy with a lean balance sheet, net-debt 1.5 times the company's earnings before taxes and depreciation and amortizati amortization. they plan to double leverage to three times the earnings before the bad stuff, and that will give them flexibility to make more acquisitions, not to mention pay out a juicy dividend and buy back a lot of stock. w.r. grace hasn't been permitted to return cash to shareholders during the bankruptcy process. that's going to change in the fourth quarter when the company finally emerges from chapter 11. so, when that happens, how much do i think w.r. grace will be worth? right now the stock is darn cheap on a cash flow basis, apples to apples with the speciality chemicals companies and has similar margins, but given that w.r. grace has three distinct businesses, perhaps the best way to analyze this stock is the sum of the parts bases.

well, sure enough, goldman sachs came out with a terrific piece of research a couple weeks ago, and they're now suggesting that w.r. grace's catalyst segment, that one i told you for refining chemicals and gasoline, could be worth $5.3 billion. construction segment, not that cool on it, but that's worth $2 billion. and materials segment, just under $9.1 billion. add them all, subtract the debt on the balance sheet, add in w.r. grace's net operating loss carry-forwards or nols that are worth $792 million and get a company that should be slightly under $800 million smackers. that's 26% higher than where the stock is trading right now. if everything proceeds as planned and w.r. grace exits bankruptcy in the fourth quarter, i wouldn't be surprised if the stock gets there in seven, eight months? here's the bottom line, there are many asbestos-related bankruptcy cases left where they come out clean, but every time, they have emerged from

bankruptcy and its stock goes higher. that's the position w.r. grace is in right now. here's a high-quality speciality chemical companies that's flying under the radar for the moment, and i think you've got a fabulous opportunity to buy the stock right now, before it exits bankruptcy in the fourth quarter and starts getting a lot of positive attention from wall street. attention it so richly deserves but can't be given until the company emerges from bankruptcy. i want to go to tim in oklahoma. tim! >> caller: boo-yah from tulsa tim. >> how are you? >> caller: i'm wondering about tronox. >> yesterday we talked about myriad genetics. this tronox has a lawsuit, and i like the company because i think -- let me just put the core of it -- forget the lawsuit. the business i think is coming back and coming back strong, but i am in the minority, but that would make me like trox very much. i think i'll be right on the tio-2, the whitener that makes

toothpaste and paint white. let's go to jim in florida, please. jim. >> caller: jim, this is jim, first-time caller, longtime listener. i just have a question about fmc corporation, fmc. i bought it a couple years ago. it doubled, split. i sold most of it. i'm working on house money now -- i'm playing on house money now, all house money. but i still think this thing has room to go. the question is, buy, sell, hold? >> jim, i agree it's got room to go. the ag business has been bad because we had the worst, wettest spring season ever, but fmc, which by the way, is the old food machine and corporation. food machinery? no. now they do a lot of different things, in the chemical business, but i like it a lot. i agree with you. do not sell fmc. may i just say, don't sell fmc technologies, either, which is

the oil service company. w.r. grace, well, let's just say it's in my good graces. now's a good chance to get in before it comes out of bankruptcy. remember peter grace, you older guys? remember that company ships? they were shipping, they were in so many different businesses. now they're just in the business of making money. don't move, the "lightning round" is next. still ahead, tweet your most pressing questions t to @jimcramer, #madtweets. and stick around to find out if cramer answers yours on the air.

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it is time! it is time for the "lightning round." you hear this sound and the lightning round is over! are you ready? it's time for "the lightning round" on cramer's "mad money." i want to start with nathan in west virginia. nathan. >> caller: hey, jim, a big mountaineer boo-yah to you. >> hey, man, i love the mountaineers, but i also like that john chambers went to west

virginia. what's up? >> caller: i'm calling about clorox, clx. >> all right, clorox is in the grips of this whole thing with the fed because it's a bond market equivalent stock. i think that as long as this is going on back and forth and back and forth, you have to hold clorox, can't buy it. if you own it, don't sell it, but you can't buy it here. neil in florida. neil? >> caller: boo-yah, jim, from miami, florida. i'm a fan of your show. here's my questidad with the qu. >> sir, how are you? >> i'm doing good. orbotech is a screaming futuristic company that is israeli-based. it will get its earnings in end of the year. do you think it's a hold or it's a sell after its bullish trend? >> sir, i'll be candid, i have not looked at orbotech. i have to look at that one. i don't know and can't opine on that situation. i will come back. let's go to chris in new york. chris. chris.

go ahead, chris. >> caller: hey, i'm calling about lockheed martin, lmt, which -- >> well, you know, we like lmt. we have been behind that sell for some time. we revisited it during the recent dip. we liked it before the sequester and we like it right now and we would love the lockheed martin ceo to come on "mad money," and we know you like the show. supposed to be smokin. let's go to vernon in massachusetts. vernon! >> caller: a big bayou jim from beautiful cape cod, massachusetts. >> i'm liking it! i'm liking the dog in the background. i've got one, too. >> caller: yeah, she's saying hello, too. i want to thank you for all your help, all your advice. >> okay. >> caller: it is greatly appreciated, jim. my question is, what is happening to first solar? as a stock holder -- >> well, they did a big equity offering and there will be a lot of people short it in that equity offering. that removed the tightness. the shorts were able to cover on

it, so that's what made it so it stopped flying. i like it, but to me, the cool, stellar, you know, the cool, under-the-radar solar play is the one that my travel trust will provide, and that is amat! that is the one. all right, let's go to larry in connecticut. larry? >> caller: good afternoon, jim. how are you? >> good, how are you? >> caller: good. i'm interested in your long-term investment views with respect to masco -- >> long term, i'm a bull on housing. i think we need to build 5.5 million houses, not 1 million. i'm also not threatened by the fact that mortgage rates are going up to a level that people who have been thrilled to have been buying homes at three years ago, so enough already with the mortgages! oh, and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: "the lightning round" is sponsored by td ameritrade.

♪ >> we've got our whole boo-yah family in the house. >> welcome to cramerica! >> i honestly believe you should be chief of the federal reserve. >> boo-yah, jim. >> we're huge fans. >> thank you. >> we've even got a license plate that says boo-yah. >> i love that! i've got a horse named boo-yah. >> boo-yah, jim. my two children know that when "mad money" comes on, no more "spongebob squarepants." >> hi, jim. i'm robin from new york. i love you, the show, i love stocks. i'm an "action alert" subscriber, and if you're single, i'm interested. >> ooh! >> but here's -- ♪ >> no, i'd better not. >> boo-yah, skee-daddy. love to watch your show. >> thank you. >> watch it every night. >> thank you. >> here's my husband paul, okay? he does not like your show, but he has to watch it. >> just a second. clear him out of here. okay, as soon as the ball comes and i catch and i'm looking. all right?

>> that's your cue. >> that's my cue to start? >> i want you to look to tyler for the pass. >> tyler, don't look at the camera and miss the ball. [ applause ] >> welcome back to our special family affair edition of "mad money." [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

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before we get to your tweets, @jimcramer, where i was quite active today, it's time to catch up on some homework. a week ago, on june 7th, mario in california called about usada health sciences, usna. i said i'd get back to him, very controversial. here's a multilevel marketing company that sells nutritional supplements, weight managements and personal care products. hmm, sounds a little like the highly contentious battleground stock that is herbalife, doesn't it? the whole multilevel marketing industry is uber controversial, and there is a gigantic short position in the stock. maybe the shorts are dead wrong, but here's what i know. it's already rallied 125% since the beginning of the year. they're in the middle of a

management reshuffle where the ceo stepped down and the chief operating officer resigned. if you own usana, i would take a victory lap and ring the register. if not, stay away. it is a true battleground and you don't want to go over the top into those machine guns. also last friday i got a question about clovis oncology from virginia, who also lives in virginia! clovis has had a staggering, staggering 320% run year to date. that's amazing, isn't it? largely to a gigantic 38-point spike at the beginning of this month, which came right after the company presented positive data on two cancer drugs at that big american clinic oncology meeting i talked about, very impressive, causing analysts to boost the stock and prices. after a boost, it's not paid. it's not paid. you've got to be careful, especially since the smoking hot cancer drugs that caused the rally are only in phase one. plus, they looked into a

secondary offering earlier this week at $72 in a deal to increase it, serious dilution. hence, that's why it fell $3.85 today or 5.6%. now, i do like this biotech company's prospects, but i think clovis needs time to digest its enormous run in all that new stock. and you know what? let's wait for pullback, and then we will, indeed, revisit this one in a full segment at a lower level. now let's get to your tweets. this is from db. "up over 30% in fairway," fwm. "time to sell? #cramerica." frankly, i like whole foods, but obviously, this has been a winner and i like fairway to shop at. i still like whole foods more, but you would say tell people to sell whole foods and buy this one. i didn't because i like whole foods for the long term. and that doesn't excuse it. i just happen to like whole foods. i've been right for a long time about it. here's juan from paul david mad

yok. and it says "a tradition to keep, lemonade girl inspiring your staff did a great job putting it together. she was so poised, sitting there next to her on the couch. and i almost didn't want to go to her because i was afraid it would like make her nervous. obviously, this lemonade business? i mean, she is, like, ready. she should be like a chief marketing officer for salesforce.com. mark, i know you watch the show. put her on the payroll. @chriscarr13. "jim, please respond. what do you see for line energy. it's recommended but down every day. help." okay, now, there's a firm that is very helpful to, in this particular case, a short story, short case against linn. that firm has been right about the stock, there is no doubt about it. they have been wrong about the stock, there is no doubt about it. i never say i'm doing well on something had when i'm not,

okay? that said, i've liked linn since before the show began, so i'm not going to change my view on it just because the stock went down. do i wish the stock would go up? yes, because i like to make money for charity and nye charitable trust. have the shorts been right about the stock? yes. will they stay right? they'll apparently have a conference call next week and remember, after that, the shorts will have to start paying the distribution. it's going to come monthly and hopefully there is a deal with petroleum. i like mark ellis, but does that make me an idiot? that's your call. i've done more work on this than just about anybody because i've liked it for many, many years. i like the accounting. you may not. i've put it all out there. the shorts have been right, "action alerts" has been wrong, but i take a longer-term view as i have since the show begin. the next tweet comes from, i don't know. jim, gold typically good from july to september, do you think we could be in for a bit of a

rally in the price of gold? you will not get the seasonal rally this year because of the way india has made it difficult for the jewelry sales to occur. india's made owning gold -- and india's a huge country for l buying gold -- more difficult, and that has really hurt the physical metal. that's what you're running up against. stick with cramer.

let me give you my pundit impression. all rallies are phony. all sell-offs are real.

every plus 1% day is manipulative. every down 1% day shows the market's true colors. hey, come on, that's the conventional wisdom, especially these days where the past seems to be set in cement. stocks must go down and rates must go up. all that matters for the entire rally were the actions of the biggest manipulator of them all, the federal reserve, right? take yesterday. i hate up openings. those big up openings on nothing but good foreign news were worst, but down openings where everyone sees only the gloom only, those will meant for reversal days. ben bernanke had a conversation with his go-to guy, jon hilsenrath, "wall street journal," in a go-to moment where the bears were betting against the big, fat, phony rally because the truth about rates, and therefore, stocks, is not out of the bag, that rates have to go higher. so, bernanke manipulated the market, right? when i suggested yesterday that bernanke picked a perfect time to spread the gospel about how you can't presume that tapering will soon be upon us, initially,

people were suspicious and credulous. did i believe the fed did anything substantive at all in that interview or was i being naive? give me a break, i am anything, if not naive. i was simply saying that bernanke has learned to play the game. he knew his words were going to have an impact because he wasn't trying to stem a decline. he was tasaying, you think i'm done? think again, i'm going slam your head against the wall, intelligentsia being the short sellers. for those who think bernanke doesn't know the impact of his words, trust me, he knows all too well, he knows the impact, and he didn't have to undo his testimony two weeks ago when his inartful comments left people with the impression that the fed could soon start tapering. so, the market gained steam and bernanke is not happy with the velocity of the move. under the manipulation, first of all, he is the fed chairman, influencing markets for the good of america. that's part of his job. but beyond that, my take's pretty clear -- the truth is an abstraction. when it comes to the market it

really doesn't matter if something's true. what matters is that people believe it's true. does bernanke really have the power to contain rates? maybe, maybe not. but with rates down yesterday and bernanke squawking, how can you believe he's powerless? more important, how do you know that the trader next to you doesn't believe he's for real and says we've got to cover our shorts position, because we've got to do it now! i mean, that's the kind of talk here on the trading desk, which brings us back to the first point about whether one market is true and the other is phony. i've lived with this triridicul phony dogma for 14,000 allegedly phony dog points. i've heard this judgment through the fabulous run of many stocks. all i can say is nothing's phony if market's up, if a bid can be drilled on a stock that moved up big on the phoneies, nothing. if you're able to sell a big piece of merchandise at a big price, what the heck is phony about the prices that were moved up? my view is seen as having no rigor at all, versus those who think it's a big, rigged market. at the end dayti, the joke's on

them. i don't care who rigs what, what's real, what's fake, what's different, what's stale, what's fresh, what's known, what's unknown. all i care about is what's working. that's because i'm neither a bull nor a bear. i'm a practical guy who knows that manipulation happens on both sides and federal regulators have exposed the fact that people lie and cheat to make money, long side and short side. i just want those of you at home to know that this stuff goes on and to recognize it, and when possible, game it for what it's worth, a wave you can ride to profits, nothing more but nothing less. stick with cramer. all business purchases.

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a very rough day and what's changed is the whole coloration of the market. we're in position to have some pretty bad down days and some good days. it's no longer just going to be the magic carpet ride because we may not have ben bernanke at our back that much longer. i promise to find money for you. right here on "mad money," i'm jim cramer. see you monday! >> the world series of poker is the richest sporting competition in the world, and yet it pales in comparison to the 1/2 million people who are gambling on the internet right now, even though it's illegal and unregulated in the u.s., which partly explains how a few cheaters were able to steal more than $20 million playing poker online. >> if you can see everybody's cards in poker, you could be the worst poker player in the world up against the best poker player in the world, and you're gonna beat them just about every time. [stopwatch ticking] >> gentlemen and ladies, place your bets. let the games begin.